Senate passes AB523 lowering transportation-network insurance minimum and limiting vicarious liability

The Nevada Senate on May 8, 2025, passed Assembly Bill 523, which reduces certain minimum insurance requirements for transportation network companies (TNCs) and modifies liability rules for such companies and delivery network companies.

Senator Winn summarized the bill on the floor: “Assembly bill 523 reduces the minimum amount of transportation network company insurance that a transportation network company, driver, or monitored autonomous vehicle provider must maintain under certain circumstances from 1,500,000 to 1,000,000. The bill provides that a transportation network company or a delivery network company is not vicariously liable for any act or omission of a driver that harms a person or property under any theory of liability or duty of care. Additionally, the bill limits for any driver who uses a personal vehicle, which is a motor vehicle, the applicability of the bill's provisions to a delivery network company that maintained a motor vehicle insurance policy in the amount of not less than $1,000,000 at the time of the incident giving rise to the action. The mandatory provisions of this act do not apply to a cause of action that arises before 10/01/2025.”

The Senate roll call was 19 yes, 1 no; the bill received the constitutional majority and was declared passed and ordered to the Assembly.

Why it matters: The bill lowers a specific insurance threshold in state law and narrows company liability for drivers’ acts under specified conditions, potentially altering insurance and litigation dynamics involving ride-hailing and delivery drivers in Nevada.

The bill will next proceed to the Assembly for its consideration.